Chapter 1 - Introduction To Business

Question 1

What is a business

Answer 1

A business is an organisation that provides goods and services to consumers

Question 2

Name the two types of businesses and describe them

Answer 2

A commercial business provides goods and services to consumers and aims to make a profit
A non-commercial business puts people and the community first ahead of profit

Question 3

Name the 11th stakeholders in the business

Answer 3

Entrepreneur 
investor 
employer 
employee 
producer consumers 
manager supplier 
service provider 
government 
local community

Question 4

What is an entrepreneur

Answer 4

And entrepreneur is a person who spot a gap in the market and comes up with an idea that they can turn into a business

Question 5

What is an investor

Answer 5

An investor is a person or organisation that provides the entrepreneur with capital needed to establish and operate the business

Question 6

What is an employer

Answer 6

And employer recruit staff to enable the organisation to carry out its business they’re responsible for providing safe working additions for employees and paying the agreed wage salary for work done

Question 7

What is an employee

Answer 7

An employee is recruited by the employer to work in the business in return for a wage or salary employees have the skills and qualifications needed to operate the business successfully

Question 8

who is a producer

Answer 8

A producer takes wrong materials and transforms them during the manufacturing process into finished products

Question 9

Who are the consumers

Answer 9

People who buy goods and services for their personal use

Question 10

Who is the manager

Answer 10

A manager is responsible for the day-to-day running of the business and insures that the firm achieves its goals

Question 11

Who is the supplier

Answer 11

A supplier is the firm that provides raw materials to the business

Question 12

Who is the service provider

Answer 12

The service provider provides services needed by the business to operate successfully an example is bank of Ireland

Question 13

Who were the government

Answer 13

The government is the body of people that govern the country it imposes taxes on businesses for example corporation tax

Question 14

Who were the local community

Answer 14

It consists of individuals households and organizations are located close to the business

Question 15

What is an interest group

Answer 15

A group of people who meet and campaign for a common goal

Question 16

Name the three types of interest groups

Answer 16

Business interest group
trade associations
trade unions

Question 17

What is a business interest group

Answer 17

It represents the interests of business owners

Question 18

Give an example of a business interest group

Answer 18

Irish business and employers confederation

Question 19

What is a trade association

Answer 19

Represent the interests of business involved in the same industry

Question 20

Give an example of a trade association

Answer 20

Society of the Irish motor industry

Question 21

What is the trade union

Answer 21

it represents the views and interests of employees in a particular industry

Question 22

Give an example of a trade union

Answer 22

Services industrial professional technical union

Question 23

Name the four types of relationships between stakeholders

Answer 23

Cooperative
competitive
dependent
Dynamic

Question 24

What is a cooperative relationship between stakeholders

Answer 24

The stakeholders work together towards a common goal this helps to ensure a better results then if the stakeholders work independently or against each other this creates a win-win scenario for both parties

Question 25

What is a competitive relationship between stakeholders

Answer 25

Stakeholders work towards different goals each stakeholder want to achieve a particular objective at the expense of the other a competitive relationship creates a win lose scenario between the two parties

Question 26

What is a dependent relationship between stakeholders

Answer 26

The stakeholders need each other for success once a call there is not able to achieve their goals without the help of another stakeholder

Question 27

What is a dynamic relationship between stakeholders

Answer 27

The relationship between stakeholders is constantly changing at times relationships can be a cooperative or dependent at it others it’s competitive

Question 28

Describe a cooperative relationship between consumer and producer

Answer 28

The producer conduct market research and find out what consumers like and dislike the results is that consumers their products that satisfy their needs and help to increase sales and profits for the producer

Question 29

Describe a competitive relationship between a consumer and producer

Answer 29

The producer make a poor quality product your service to save the business money the consumer is unhappy and decides to make future purchases from the competitor the result is loss of sales, profit and reputation for the producer

Question 30

Descry a cooperative relationship between an employer and employee

Answer 30

In a corporate relationship the employer offers good pay and working conditions to employees and in return employees work hard for the business

Question 31

Describe a competitive relationship between employer and employee

Answer 31

This relationship can become competitive if the employer decides to reduce the employees pay the employees may become demotivated and fear for their job security and this may reduce their productivity

Question 32

Disquiet describe a cooperative relationship between entrepreneur and government

Answer 32

In order to set up or expand the business the entrepreneur may get a grant from the government organisation such as a local enterprise office the government needs entrepreneurs to provide employment as this reduces the number of people claiming social welfare payments

Question 33

What is boycotting

Answer 33

Consumers refuse to buy goods or services from the firm to show their dissatisfaction with the business

Question 34

What is lobbying

Answer 34

It involves trying to persuade decision-makers to support laws or rules that gives an advantage to your organisation or industry

Question 35

What is a price war

Answer 35

When competitors in the same line of business cut their prices in order to increase their marketshare